Originally published on: August 07, 2024
Amid the recent crypto market downturn, trading firm Cumberland seems to be “buying the dip” by making a strategic investment of $95 million. The move, flagged by blockchain analytics platform Lookonchain, involved the receipt of 95 million Tether USDT tokens from the stablecoin issuer’s treasury. Following this, Cumberland distributed the USDT tokens to various cryptocurrency exchanges, including Coinbase, Kraken, and OKX.
According to Lookonchain’s data, Cumberland has injected around $6.28 billion into the crypto markets since October 2023. As a subsidiary of trading firm DRW, Cumberland has recently obtained its BitLicense from the New York State Department of Financial Services (NYDFS), allowing it to operate as a digital currency firm.
This strategic investment comes at a time when the crypto market experienced one of its largest sell-offs, wiping out over $500 billion from the total market capitalization. The downturn coincided with a depreciation in equity prices and disappointing earnings reports from leading tech companies like Microsoft and Nvidia. Investors’ confidence in the market was shaken by these events.
Despite the market challenges, entities like Cumberland are seizing the opportunity to buy crypto at lower prices. Recent on-chain data shows that whales have acquired nearly $23 billion in Bitcoin over the last month. CryptoQuant’s CEO, Ki Young Ju, believes that significant entities are making moves behind the scenes, with a substantial amount of BTC being transferred to permanent holder addresses.
While whales and legitimate investors are taking advantage of the market conditions, malicious actors are also active. The perpetrator behind the 2022 Nomad bridge hack recently purchased a significant amount of Ether using stolen crypto. The hackers attempted to launder the funds by sending the ETH to a crypto mixing service, Tornado Cash.
In a rapidly evolving market environment, strategic investments and opportunistic moves like Cumberland’s $95 million deposit showcase the resilience and adaptability of crypto trading firms. Despite the challenges, entities are looking for ways to capitalize on market opportunities and position themselves for long-term success.